Capital Allowances are tax deductions that businesses can claim on certain types of expenditure for commercial properties. These include machinery, and equipment that are used for business purposes. These allowances enable businesses to offset the cost of these assets against their taxable profits, reducing their overall tax liability. Understanding and maximising capital allowances can significantly benefit businesses by improving cash flow and reducing their tax burden.
However, not everyone is familiar with the rules, regulations and eligibility surrounding Capital Allowances. Explore our FAQs to learn more
Capital Allowances are typically calculated based on the cost of qualifying assets with reference to the date the assets were purchased. The specific calculation methods may vary, but they often involve writing down the value of the asset over a period of time.
Make use of our Claims Calculator in the top right-hand corner of this page to help establish how much tax relief may be available.
